Paris Baguette, a Korean bakery chain, is making significant strides in the global market as it aims to expand its presence to over 1,000 new international stores by 2030. With a focus on the United States and a new factory being built in Texas, this ambitious growth represents a pivotal moment in the companyโs 80-year history, which has seen it evolve from a family-owned bakery to a global player.
Background
Established in 1988, Paris Baguette became the first Korean bakery brand to open in China, marking the start of its international journey. Today, the bakery boasts approximately 4,000 locations across 14 countries, including major markets in Asia, Europe, and North America. Under the SPC Group umbrella, Paris Baguette generated sales of $5.6 billion (ยฃ4.26 billion) in the previous year alone.
Despite its French-inspired decor and branding, Paris Baguette emphasizes its distinct identity. โI wouldnโt limit our bread to everything from France. We are an international brand,โ said Jin-soo Hur, president and CEO of SPC Group. He argues that pastries like croissants transcend national identities and are part of a global culture.
Expansion Plans
As part of its strategy, Paris Baguette is investing heavily in the U.S. market. The forthcoming Texas factory, set to become the largest overseas production facility by 2027, will supply goods to the U.S., Canada, and Latin America. Mr. Hur views success in the American market as vital for Paris Baguetteโs international aspirations.
To enhance its popularity, the bakery has formed partnerships with high-profile sports teams, including the English Premier Leagueโs Tottenham Hotspur. This collaboration aims to integrate Paris Baguetteโs baked goods with fan experiences during matches, driving brand visibility and engagement.
Cultural Relevance of Food
The bakeryโs strategy reflects a broader cultural appreciation of food. โI think food is culture,โ Mr. Hur remarked, highlighting how sports can create communal excitement and a favorable atmosphere for brand exposure.
Notably, the growing global fascination with Korean culture further enhances the chainโs opportunities for success. Saveria Busato, a pastry chef at the Culinary Institute of America, emphasized that with the rise of Korean and Japanese influences, there is increasing consumer interest in Asian-inspired foods.
Production Techniques and Quality Concerns
Paris Baguette utilizes a system that delivers frozen dough to franchises worldwide, which increases efficiency. However, this method raises questions about the crucial balance between mass production and artisanal quality. Busato conducted a blind taste test, critiquing the result of a frozen dough croissant as lacking in key texture and flavor.
Acknowledging the challenges of producing high-quality baked goods at scale, he noted the appeal of traditional Asian sweets, stating that products like Korean milk bread could thrive in European markets due to their unique flavor profiles.
Navigating Economic Challenges
The ongoing cost-of-living crisis presents additional challenges for Paris Baguette, particularly in the U.S. market with rising inflation rates. As competitors like Pret A Manger adapt by implementing subscription services and expanding dine-in options, Mr. Hur expresses his desire to prioritize cultural expansion over mere profit.
โIf we are only trying to make profit, weโll just stay in Korea,โ he remarked. His vision is to reshape global bread culture and continue opening new bakeries, which he believes will benefit people and contribute positively back to Korea.
As Paris Baguette continues its global journey, its blend of cultural influence, strategic expansion, and commitment to quality will likely define its role in the competitive bakery landscape.
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